The REA Data Model

question 23

Multiple Choice

The REA data model

• A) is used in many areas of business and science.
• B) was developed solely for use in designing accounting information systems.
• C) classifies data into relationships, entities and accounts.
• D) all of the above

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Definitions:

Accounts Receivable Ratio Formula

A financial metric used to evaluate how efficiently a company is managing its receivables and how quickly it turns them into cash.

Average Monthly Gross Production

The total production or output of a company or industry, averaged over a month, before deductions for costs or expenses.

Income Statement

A statement that demonstrates the profit and expenses for a given month and also includes year-to-date information for a given year.

Year-To-Date Information

Data gathered or accumulated from the beginning of the current calendar or fiscal year up to the present date.